ABSTRACT
One can point to a number of major differences between Mao Zedong and Deng Xiaoping eras, but particularly striking is the emergence of what might be called a consumer culture. During the Mao Zedong era, still under Cold War system, Chinese people were required to restrict consumption to the bare necessities. This chapter presents trends in the consumption levels of farmers and nonfarmers. During the Deng Xiaoping era consumption as measured in nominal prices increased dramatically, that is, the absolute value of consumption for farmers increased from renminbi (RMB) 138 per year in 1978 to RMB 1,756 in 1996. When synthetic fibers and fabrics became widely available after 1985, consumption of cotton cloth declined steadily. This trend was the same in cities and the countryside. Looking first at foodstuffs, the largest income-associated gap—three times—is seen in dairy products. Furthermore, the gap up to the higher-middle-income rank is only two times. The good that most reflects income levels is women's clothing.
